Associate of indicted Arizona Congressman Renzi pleads not guilty

Published 6:00 pm, Wednesday, March 5, 2008

An associate of indicted Arizona Rep. Rick Renzi pleaded not guilty Thursday to charges he conspired with the congressman to use his office for financial gain.

Texas real estate investor James W. Sandlin is accused in a 27-count indictment along with Renzi with extortion and conspiring to promote a land swap.

The charges accuse Sandlin, 56, of Sherman, Texas, and Renzi of conspiring to craft a swap of federal land benefiting both men. The charges include wire fraud, extortion and money laundering and conspiracy.

Sandlin was released without bail after his arraignment in U.S. District Court in Tucson. He and his lawyer both declined to comment.

Renzi pleaded not guilty to the charges on Tuesday.

Renzi lawyer Reid Weingarten said after his client's court appearance this week that he would stay in office and cautioned against a rush to judgment, saying the presumption of innocence applies to congressmen as well. Renzi, a three-term Republican whose 1st Congressional District covers most of northeastern Arizona, announced last year that he would not seek re-election.

Both are due back in court on April 29.

The indictment accuses Renzi of telling groups seeking to get the surface rights to an Arizona copper deposit that they would have to buy land owned by Sandlin to win required congressional approval for the land exchange.

After an investment group agreed to buy the land, Renzi received $733,000 from Sandlin, the indictment said. Sandlin had owed Renzi money from a previous land deal.

Renzi and another co-defendant are also charged with eight other counts.

Those charges allege that Renzi and Andrew Beardall, 36, a lawyer and business associate from Rockville, Md., embezzled money from the Renzi family insurance business to finance Renzi's first congressional campaign in 2001 and 2002.

Beardall had been set for arraignment Thursday, but federal officials said it had been rescheduled.

Beardall's lawyer, Lucius T. Outlaw III, said after the indictment was announced last month that his client is confident the facts will show he never tried to defraud the government or injure anyone.